It’s all semantics of course. Traders can find opportunities to trade in any environment. What you call it does not matter one iota.
The only exception is tight trading ranges. They are meat grinders and the object there is too maintain capital for the next sizable move. That move is inevitable, but could be months away. Meanwhile, the drip, drip, drip of small losses can be soul crushing.
I’ve had that experience and it’s not fun. But lately, my longs have done much better, so there’s light in the tunnel. I’ll have an update coming later this morning. Also an update on the May withholding taxes, although I’m not sure that I’ll beat the jobs report, which no doubt will beat expectations because that shit is rigged.
So yeah, I think that this is a weak cyclical bull market within a secular bear. That means that a few big stocks are holding up the averages, while the vast majority of issues act like shit for years on end. I was active in the markets in the 1970s and 80s, and if you weren’t in the Nifty Fifty, you weren’t making any money.
Except for baking soda, of course (CHD). 😁 I wonder how many stock pickers saw that multi decade move coming (150 X).
As for today, the ES 24 hour S&P futures that we watch are up up and away again. As I write at 6:40 AM ET they are hitting trend resistance at 4244. The 5 day cycle projection is right around there also. A 5 day cycle high is ideally due tomorrow, but wouldn’t be unusual for it to come today. However, if they clear 4244 with a bit of momo, there’s running room to 4265 or 4280.
If they roll over here, the first sport level is around 4225. That’s where the uptrend would be tested.
For moron the markets, see:
- That Seventies Show May 30, 2023
- Gold Gets Closer to the Bottom May 30, 2023
- Swing Trade Chart Picks – Numbers Lean Bearish, Charts Don’tMay 26, 2023
- Modestly Hedged Dealers, Record Short Hedge Funds Suggest Disaster Ahead May 25, 2023
- The Most Widely Forecast Economic Disaster In History May 16, 2023
- The Big One is Coming May 3, 2023
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